Why does Console show Green Briefcase for shares a day before their gains become LTCG?

Taxation
1

As per this thread, if I buy a stock on 1-Jun-22 and sell it on 1-Jun-23, it is STCG. It becomes LTCG only from 2-Jun-23 onwards. But Zerodha shows this green briefcase symbol for this share on 1-Jun-23 itself. It is misleading. Once it shows the green briefcase, I assumed it comes under LTCG if I sell it from that day onwards. TaxPnL downloaded from Console also shows it as LTCG. Now, my CA tells these are all STCG.

Is the above LTCG understanding correct? If it is so, I think Console should show the green briefcase symbol only from the 366th day onwards.

2

@Quicko

Can you please check if this is correct or not?

If I buy a stock on 1-Jun-22 and sell it on 1-Jun-23, its gain is STCG. It becomes LTCG only if I sell it on or after 2-Jun-23.

3

As per my understanding , a period of 1 year always ends on the last day of the preceding month to that of the year beginning month.

In your example, 1 year would be beginning on
1-Jun-22 and will end on 31-May-23, so it becomes a LTCA (Long-term capital asset) from
1-Jun 23 in my opinion.

This is similar to how financial years are determined 1st April to 31st March.

1 Like
4

Thanks @SG_13 .

That is what my understanding is as well. Perhaps, my CA and the commenter referred in the issue in my OP calculated them incorrectly.

Like 365-1 = 364 days and missed including the first day.

5

There is no concept of days perse.

The income tax act classification uses months, so any listed stock held for more than 12 months will be classified as long-term.

So if we assume a stock was purchased in the middle of the month say 22-Jun-22 then period upto 21-Jun-23 would be considered as 12 month.

6

Then 2024 being a leap year, the Console green briefcase for each stock fails to correctly identify if the stock gains fall under LTCG. It shows the green briefcase after 365 days and does not consider months. I saw it this year.